Establishment of an Advance Ruling System for Valuation and Rules of Origin-UP
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Guidelines for the Implementation of Customs Administrative Order CAO-No.-02-2016
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Imported Goods with De Minimis Value not Subject to Duties and Taxes CAO-2-2016
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Glosarry of Terms




A brokerage firm, or simply brokerage, is a financial institution that facilitates the buying and selling of financial securities between a buyer and a seller. Brokerage firms serve a clientele of investors who trade public stocks and other securities, usually through the firm's agent stockbrokers.


A firm that provides transportation services, typically owning and operating transportation equipment.

Examples include: trucking company, railroad, airline, steamship line, parcel/express company.


An individual or firm to whom freight is shipped. A freight receiver.

FOB (Free-on-Board) Point

Point at which ownership of freight changes hands from shipper to consignee. FOB origin indicates that consignee owns the goods in transit; FOB-destination indicates that shipper owns goods in transit. Owner of goods in transit is liable for loss & damage to freight, and thus should provide insurance.

1. FOB-origin, freight collect: consignee pays freight charges and owns goods in transit.
2. FOB-destination, freight prepaid: shipper pays freight charges and owns goods in transit.
3. FOB-destination, freight prepaid and charged back: shipper owns goods in transit, pays for freight but bills consignee for the charges.


A charge paid for carriage or transportation of goods by air, land, or sea.

A colloquial term for freight charge. Goods may be transported on freight-prepaid or freight-collect basis:
(1) If the freight is paid by the consignor (as under C & F and CIF terms) the goods remain the consignor's property until their delivery is taken by the consignee upon their arrival at the destination, and payment of the consignor's invoice.
(2) If freight is paid by the consignee (as under FOB terms) the goods become the consignee's property when handed over to the carrier against a bill of lading.

Freight Bill-of-Lading (Freight Bill, BL or BoL)

A document providing a binding contract between a shipper and a carrier for the transportation of freight, specifying the obligations of both parties. Serves as a receipt of freight by the carrier for the shipper. Usually designates the consignee, and the FOB point.

Loss and Damage

Loss or damage of freight shipments while in transit or in a carrier-operated warehouse. Terms for the handling of claims are usually stipulated in the freight bill. Shippers/consignees usually take out insurance against L and D with premiums a function of the value of goods shipped, and the likelihood of L and D.

Private Carrier

Owned and operated by a shipper. Usually refers to private trucking fleets. Components include: vehicle fleet, drivers, maintenance equipment. Often more expensive than contracting out, but not always. Can serve special needs: fast, high-ontime-reliability delivery; special equipment; special handling; availability.

Examples: Safeway (grocery), Office Depot (office products).

Shipper / Consignor

An individual or firm that sends freight. A freight originator.


A tax imposed on imported goods and services. Tariffs are used to restrict trade, as they increase the price of imported goods and services, making them more expensive to consumers. A specific tariff is levied as a fixed fee based on the type of item (e.g., $1,000 on any car). An ad-valorem tariff is levied based on the item’s value (e.g., 10% of the car’s value). Tariffs provide additional revenue for governments and domestic producers at the expense of consumers and foreign producers. They are one of several tools available to shape trade policy.